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Regular Council Meeting January 23, 2012 Page 9 BIDDER; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. City Engineer Shawn Napier said the City of Paris opened five bids on January 12`h and that Hayter Engineering put the plans and specifications together for the City. Mr. Napier said it did not look like there was going to be enough money to do all three projects, so Public Works was asked to prioritize the three projects and they did so, which included the third project as a deduct alternate. Mr. Napier said there wasn't enough money so the third prioritized project was taken out, which was Dixon Street and I Ith N.W. He told Council the remaining projects were to replace sewer lines at 15th and 16`h N.E. and a water line on Sherman Street for two areas. Mr. Napier stated Four Thirteen was based in Texarkana, but bid the project as the prime contractor with the majority of the work to be done by S&S Boring, a local company. He also said in either case, whether the contract was awarded to Barney Bray Construction or S&S , the majority of the money would stay local. Mr. Napier said the base bid was won by B. Bray Construction, but after you take the deduct alternate out, the lowest bidder was Four Thirteen Incorporated. Council Member Grossnickle inquired of Josh Bray if there were other companies capable of doing the boring work. Mr. Bray said Bray Construction currently did all boring in house with their own crew. Mr. Napier said S&S Boring was the construction name and that all of the construction companies were capable of doing the work. Council Member Wright said he would like to move it to a local concern, because of the closeness of the bid and because of their participation with the City in other endeavors. Council Member Wright said they gave the City money for demolition and they gave the City $5,000.00 for undesignated purposes. Council Member Pickle asked if the $57,277 spent to date included payment for the engineer on this project. Mr. Napier said some of it was for engineering fees and some was for smaller items purchased throughout the year on this project. Council Member Pickle questioned the way it was bid asking if it would have been better to have first bid the piece meal then the entire project as opposed to the way it was bid. Mr. Napier explained that one job was already pulled out and it was cheaper spending money through Hayter, bidding it the way it was bid than to completely change it up and take Dixon Street out altogether. Council Member Avila wanted to know how long it would take to complete the project and Mr. Napier said it would be about 160 days. Council Member Frierson asked about access to the bids. Mr. Napier said he would provide them and apologized for the bids not being in their Agenda packets. Council Member Frierson asked about the percentage difference between the two bids and Council Member Pickle said it was 1.271% difference. Council Member Grossnickle inquired about the dollar difference and Mr. Napier said it was $5,700.00. A Motion to award it to B. Bray Construction was made by Council Member Pickle and seconded by Council Member Wright. Motion carried, 7 ayes - 0 nays. 17. Deliberate and act on a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, ACKNOWLEDGING AND APPROVING A SUBORDINATION AGREEMENT ATTACHED HERETO AS EXHIBIT "A" AND SUBORDINATING THE CITY'S 2008 NOTE WITH KENNETH WHITE D/B/A WHITE'S FLOORING TO THE AMENDED LOAN AGREEMENT BETWEEN LAMAR NATIONAL BANK 1 1